REI Extends Healthcare Benefits to all Part-time Employees; New Program Hailed ''Leading Edge'' within Retail Industry.SEATTLE -- Outdoor retail co-op Recreational Equipment, Inc. (REI), long recognized for having one of the most generous employee benefits programs in the retail industry, today announced plans to extend healthcare benefits to all of its part-time employees and their families, a move that human resources The fancy word for "people." The human resources department within an organization, years ago known as the "personnel department," manages the administrative aspects of the employees. experts view as leading edge among all employers. REI's decision, in response to concerns over the persistent double-digit rise in the cost of healthcare, is intended to make it more affordable for 3,000-plus of the retailer's part-time employees (not previously eligible under REI's current plan) to care for their health, and the needs of their families. While REI has long offered a medical benefit package to part-timers who work a rolling average of 20 hours per week over a six month period, the new program is available to all part-time employees regardless of hours worked, through Strategic Resource Company, an Aetna company. The new plan will include annual coverage for routine health services health services Managed care The benefits covered under a health contract such as doctor's office visits and annual exams, as well as hospital care (up to $10,000) and a prescription drug prescription drug Prescription medication Pharmacology An FDA-approved drug which must, by federal law or regulation, be dispensed only pursuant to a prescription–eg, finished dose form and active ingredients subject to the provisos of the Federal Food, Drug, benefit. The expanded benefits package, which will also be offered to REI's approximately 1,200 seasonal employees, will begin enrolling part-time REI employees with at least 30 days of employment on Nov. 1, with coverage beginning Jan. 1. The medical benefits will be subsidized sub·si·dize tr.v. sub·si·dized, sub·si·diz·ing, sub·si·diz·es 1. To assist or support with a subsidy. 2. To secure the assistance of by granting a subsidy. by REI at 60 percent of cost, and will include additional options for a low-cost dental plan and a company-paid life and accident insurance policy. REI employees participating in the plan, known internally as the PaTH (Part-Time Healthcare) plan, will each pay an individual medical/dental monthly premium of approximately $41 with a $150 deductible That which may be taken away or subtracted. In taxation, an item that may be subtracted from gross income or adjusted gross income in determining taxable income (e.g., interest expenses, charitable contributions, certain taxes). , and will receive access to the same Aetna network of 646,000 healthcare professionals as their full-time REI colleagues, including more than 385,000 primary and specialty care providers, and 3,908 hospitals nationwide. According to according to prep. 1. As stated or indicated by; on the authority of: according to historians. 2. In keeping with: according to instructions. 3. a 2005 Watson Wyatt Data Services national survey report on employee benefits, less than two-thirds (60.7 percent) of retail respondents In the context of marketing research, a representative sample drawn from a larger population of people from whom information is collected and used to develop or confirm marketing strategy. with more than 1,000 employees offer medical benefits to part-time employees, who work 1,115 hours or more per year. REI's offering will be made available to all part-time and seasonal employees working less than 20 hours per week, or 1,040 hours per year, after 30 days of employment. "Most retailers, like REI, question whether they can remain profitable while trying to promote good health among their employees given the rising cost of healthcare," noted Michelle Clements, REI vice president of human resources. "For REI, where our part-time employees often serve as the front line to the REI customer experience, we believe the answer is yes. As a company committed to healthy lifestyles and a positive workplace culture, we view this move as an extension of that commitment, and one that I believe will make for an even healthier and dedicated work team." "It would be very difficult to find another national retailer that is subsidizing its healthcare benefits for part-time employees at such a generous level," said Thomas Pursley, of benefits consulting firm Noun 1. consulting firm - a firm of experts providing professional advice to an organization for a fee consulting company business firm, firm, house - the members of a business organization that owns or operates one or more establishments; "he worked for a Mercer mer·cer n. Chiefly British A dealer in textiles, especially silks. [Middle English, from Old French mercier, trader, from merz, merchandise, from Latin merx Human Resources Consulting. "This leading edge move sends a clear message to its employees that each is highly valued regardless of how many hours they clock, and validates REI's position as one of the nation's top employers." Earlier this year REI was named as the "Best Outdoor Chain Store" by Men's Journal Men's Journal is an American men's lifestyle magazine focused on outdoor recreation. Comprised of editorials on the outdoors, health and fitness, style and fashion, and "gear". The magazine has a circulation of 700,000. magazine, and was included on the "100 Best Companies to Work For" list appearing in Fortune magazine -- one of only eight companies to have been included on each of the magazine lists and two book versions. Other benefits extended to all REI employees include flexible scheduling, gear discounts, free gear rentals, tuition reimbursement Reimbursement Payment made to someone for out-of-pocket expenses has incurred. , performance-based bonus incentive program, and gear grants to support employees' personal outdoor adventure challenges. "We believe that by offering a positive workplace environment and a strong benefits package, we'll maintain a high employee satisfaction and retention rate," added Clements. Currently REI enjoys a low retail industry rate of employee turnover -- approximately 50 percent annually, compared to an industry average of 75 percent per year. REI is a national outdoor retail cooperative, committed to inspiring, educating and outfitting for a lifetime of outdoor adventures. Founded in 1938 by a group of Pacific Northwest mountaineers seeking quality equipment, REI is today the nation's largest consumer co-op with more than 2.5 million active members. REI offers products from all of the top brands for camping, climbing, cycling, hiking hiking Walking, often among hills or mountains, as recreational sport. It represents an activity in its own right and also figures in backpacking, camping, hunting, mountaineering, and orienteering. , outdoor cross training, paddling pad·dling n. 1. The act of moving a boat by means of a paddle. 2. A spanking or beating with a paddle. Paddling of ducks: a company of ducks on water—Lipton, 1970. , snow sports and travel, including its own line of award-winning gear and apparel. While anyone may join or shop at REI, members pay a one-time $15 fee and receive a share in the company's profits through an annual member refund based on their purchases. REI currently operates stores in 25 states, two online stores -- REI.com and REI-OUTLET.com -- and an adventure travel company, REI Adventures. A portion of REI's profits is set aside each year for support of environmental stewardship The integration and application of environmental values into the military mission in order to sustain readiness, improve quality of life, strengthen civil relations, and preserve valuable natural resources. and outdoor recreation causes. For third-party comment, spokespersons are available via the following contacts: Aetna Contact: Rachelle Cunningham, 925-543-8686, CunninghamR@aetna.com Mercer Human Resources Consulting Contact: Thomas Pursley, 206-808-8527, tom.pursley@mercer.com Watson Wyatt Data Services, Inc Contact: Kenneth Shafton, 201-843-1177, kenneth.shafton@watsonwyatt.com |
|
||||||||||||||||
Printer friendly
Cite/link
Email
Feedback
Reader Opinion